A Long Time Coming: Hertz May Buy Dollar Thrifty
Aug 25th 2012 10:27AM
Updated Aug 27th 2012 6:30AM
It seems like decades since Hertz (NYSE: HTZ) began to jockey with its primary rival–Avis Budget Group (NYSE: CAR)–for the right to own Dollar Thrifty Automotive Group (NYSE: DTG) which is among the second tier companies in the car rental industry. If market share is critical to profit, then the battle's outcome could be important. And, Hertz appears to have prevailed, according to Bloomberg.
The news service reports:
An offer in the high $80s a share will be presented to both boards over the weekend. The deal may provide less than a 10 percent premium over Tulsa, Oklahoma- based Dollar Thrifty's closing price yesterday of $81. It also may fall apart like those that have preceded it.
There have been offers and counter-offers for Dollar Thrifty in the past. So, Avis may come back again.
Dollar General's 52-week high is $84.91. In early 2011, before initial offers, the shares were below $48. They spiked to $84 in June of last year. When it appeared that there would be no buy-out, Dollar General's shares fell back to $54 in the spring.
Now, it appears that Dollar General investors will get the sum they hoped for nearly two years ago.
Douglas A. McIntyre
Filed under: 24/7 Wall St. Wire, Mergers and Buy Outs Tagged: CAR, DTG, HTZ